Total Cash Clarity

Profit & Loss | The Business Report Card

How often do you look at your Profit & Loss (P&L) report?

Weekly? Monthly? Do you leave it up to your bookkeeper or CPA?

As a business owner, you need to know what your financial story is, and you should look at your P&L bi-monthly. First, at the beginning of the month when your books have been closed. Then again mid-month to see if you need to defer buying something because revenues are down or you already had an unexpected expense. If your bookkeeper is not current on reconciling your bank and credit card accounts, I urge you to light a fire there!  It’s not going to be helpful if you are looking at financials that are not up-to-date. Trying to make financial decisions without current books would equate to throwing noodles against the wall to see what would stick!

I know what keeps business owners up at night: payroll, debt servicing, how to pay less in taxes, how to not run out of money on a monthly basis. I like to educate the owner on how to look at the P&L from a CEO’s perspective, not the bookkeepers; not the CPA’s.

My secret to knowing your numbers is to know WHICH numbers you should be watching as the owner.

What are your important numbers to know? I recommend that you customize the P&L report by adding a % to Income Column.  It’s an easy customization your bookkeeper can do.  Once you add this column, you can focus on where your money is being spent such as payroll percent to revenue as well as net profit percent to revenue. Also, it’s important to look at your P&L on a CASH Basis (instead of accrual).

Dirty Little Secret of Cash Flow

My secret to creating and maintaining good cash flow is to take your P&L and drop 10% to the bottom line of net profit to revenues. It’s a good “line in the sand” for determining good cash flow if you are not servicing a lot of debt.

Cash flow consultants, like me, take a deep dive into your books and strategize ways to limit liability, offset debt and keep your cash flowing. Following a review of your financials, I provide you with the tools and education needed to feel totally empowered while making informed business decisions regarding your company’s cash flow.

Tax Strategies vs. Cash Flow Strategies

Your CPA’s goal is to minimize net profits while your Cash Flow Consultant’s goal is to maximize net profits. In general, your CPA will look in the rear view mirror as the year progresses and tell you, based on history, what your tax situation is likely to be. With cash flow, you are best served with proactive strategies; not reactive strategies. Each of these subject matter experts has a different strategy and, to get maximum benefit, it is optimal to work with both.

Don’t forget to ask how the new tax laws will impact your profit & loss income statement for 2018. Remember cash flow is about proactive strategy, start your conversation today with your CPA!

Come Learn the Dirty Little Secrets

Want to learn how to create cash flow success? Then come to my in-person seminar on“Better Business Boost – Dirty Little Secrets About Cash Flow.”

Location: Better Business Bureau
3801 E. Florida Avenue
Suite 350
Denver, CO 80210
Date: Wednesday, April 25th
Time: 11:15am – 1:00pm
Lunch will be provided


Cash Flow Forecasting App

An exciting new way to manage your cash flow is coming soon! I am creating a custom cash flow forecasting app to allow users to take control of their cash flow by uploading their own information to gain immediate insights.  Users will be provided an 8 month view into the future of what cash requirements will look like! The product is scheduled to launch 1st quarter 2018!

Want to be part of our soon to launch beta test?

Click here and sign up on our online form at the bottom of the page.

On Your Team

With me on your team, you’ll get an accurate understanding of the financial health of your business and learn empowering, forward-looking cash flow strategies. Interested in learning more?  Contact me now.